Which of the Following Accounts Will Not Be Considered When

question 2

Multiple Choice

Which of the following accounts will not be considered when computing cash flow from operations?

• A) accounts receivable
• B) inventories
• C) equipment
• D) accounts payable
• E) taxes payable

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Definitions:

Indirect Expenses

Costs that are not directly attributable to a specific product or service but are necessary for the operation of a business, such as utilities or rent.

Gross Profit Ratio

Gross profit ratio is a financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold.

Wage Expenses

The total cost incurred by a company for the payment of wages to its employees.

Indirect Expenses

Costs that are not directly traceable to a specific cost object, such as the production of goods or services.